Glossary
Welcome to SFNet's Secured Finance Glossary of industry terms. Currently the SFNet Glossary has over 400 industry terms and definitions. You can search specific terms in the search tool above, or use the alpha tool below and progress on the paginations.
Customized Inventory 
Inventory that is customized in nature and potentially not easily liquidated as it is highly specific to the account debtor. Typically inventory of this nature has either a low advance rate or is considered ineligible.
Customs Broker
Broker who facilitates "clearing" of goods through customs for importers and exporters. Brokers may hold ownership/offset rights on the collateral for expenses incurred in clearing the goods thru customs.
DIP Financing
Debtor-in-Possession financing (DIP financing) is financing made available to a company during the Chapter 11 bankruptcy process, generally for the purpose of restructuring. The Debtor-in-Possession must file a motion seeking approval of the DIP financing with the Bankruptcy Court.
DIP Financing Order
A DIP Financing Order is the agreement which governs the terms of the DIP Financing and must be approved by the bankruptcy court. See DIP Financing definition for further details.
Days Past Due
Amount of days past the due date of the invoice.
Debit Memo
Debit memos are positive adjustments to an accounts receivable balance that are not the result of traditional sales.
Debt Service
Debt service Includes Principal and Interest payments. It's part of the calculation of a borrower's Debt Service Ratio which gauges the client's ability to pay its interest and principal payments.
Debt Tranches
A portion of debt within the capital structure of a company. Common tranches are senior debt, mezzanine debt and subordinated debt.